Mexico Sees a Decline in Remittances

Global Market Brief
August 30, 2007 19 30 GMT

Numerous factors are contributing to a stagnation or slowdown in the growth rate of remittances Mexican migrant workers send back to Mexico from the United States. These remittances will not suddenly evaporate, but the Mexican government cannot count on the continuation of what has until now been a substantial source of income for the Mexican people. The government will therefore need to look inward and consider domestic reforms to begin preparing for the decline in funds from migrants in the United States. Because remittances provide a safety net for many of Mexico's poor communities, the poor states and communities in central and southern Mexico will be much more affected by any decline in remittances than will the wealthier states in the North. [Read more]